Budget 2025: A Blueprint for Non-Inflationary Growth and Economic Transformation

The Union Budget 2025 focuses on non-inflationary growth through strategic fiscal management and capital expenditure, amounting to Rs 15.68 lakh crores. Key changes include a comprehensive tax code, rationalization of duties, and initiatives to bolster the economy's demand-supply dynamics, aiming at macroeconomic stability and enhanced governance.

The Union Budget 2025 has been designed as a catalyst for non-inflationary growth, prioritizing capital expenditure through strategic fiscal management. At a FICCI conference, Finance Secretary Tuhin Kanta Pandey detailed how the government plans to utilize its Rs 15.68 lakh crores borrowing exclusively for capital investment, eschewing traditional revenue expenditure approaches.

Pandey highlighted the unprecedented focus on capital projects, with Rs 11.21 lakh crores dedicated to central spending and Rs 4.27 lakh crores allocated as grants for state-led projects. This strategy, alongside achieving a fiscal deficit of 4.8% against the 4.9% target, sets a path towards further reduction to 4.4% in the upcoming fiscal year.

The budget also returns Rs 1 lakh crore to the middle class, encouraging both savings and consumption, which Pandey argued will fortify bank liquidity and fuel industry growth. Central Board of Direct Taxes Chairman, Ravi Agrawal, introduced a 'PRUDENT' tax framework, emphasizing growth through transparency and technology.

(With inputs from agencies.)